Means test and HELOC??

[Freddy03]

When I do the online means test I include ths payment correct??

Do I put it where my mortgage and car payment goes - I think it's section 42?

Because I did the test with out that payment and it said we failed but with the payment we pass.

Thanks!

[justbroke]

Yes, you include the payment.

[Freddy03]

Phew!! Thanks I almost freaked out for a minute...lol

I wonder then why you don't include student loans but include HELOC?

Do I just add the mortgage and HELOC payment together?

[justbroke]

Student loans are non-dischargeable and, more importantly, not a secured debt. Even though you can include the HELOC -- which is a secured debt -- on the Means Test... it may be questionable on Schedule J. If you're over the median and you are surrendering the home to which the HELOC is pledged... you could run into some issues with the United States Trustee (UST).

Other than that, the HELOC absolutely belongs on the means test.

[Freddy03]

Thanks I just thought since student loans are not dischargeable and have to be paid it would go on the means test. We are over the median but keeping our house.

[Freddy03]

Another means test question -

I read somewhere on here today that my tax return should be included in salary? We usally get about 3200 every year. This year will be less b/c I have to pay taxes on the 401K hardship I took earlier in the year. We have always claimed married 00 so we have extra to pay our property taxes with the refund. Now I'm concerned that if the return money will be added as salary. We would def fail the means test in that case.

[justbroke]

Yes, any refund is actually an "overpayment" or overwithholding. It is income. Generally speaking, you should take your average refund and divide it by 12 to reach your average "overpayment".

[Freddy03]

Thanks - not the answer I was looking for

[justbroke]

Thanks - not the answer I was looking for

The overpayment issue is exactly where the United States Trustee (UST) typically finds abuse in Chapter 7 cases... especially in over-the-median income cases.